ECB, BOE to Hold Rates, Signal Near-Term Plans

  • Tuesday, September 11, 2018

Welcome to “The Cyborg Analyst” weekly report by Prattle. This report includes analysis of a variety of subjects in addition to central banking events. Keep an eye out for quantitative insights on publicly traded companies, regulatory bodies, and more in the future. Sign up for free access to Prattle to receive the full Cyborg Analyst report weekly.

The Most Important Central Bank Releases This Week
central bank communications analytics research

The ECB and BOE policy meetings this week will undoubtedly be the biggest market movers, though neither meeting will result in a rate hike. The BOE will almost certainly stand pat and indicate stability. Amid persistent Brexit risks, BOE policymakers are making an effort to keep Mark Carney as governor through the transition. Meanwhile, ECB policymakers will likely signal that tapering will go as planned in the form of reduced bond purchases in October. This move to reduce stimulus will likely be coupled with dovish remarks indicating the bank’s willingness to support the Eurozone economy through any potential shocks.

At the Norges Bank, Jon Nicolaisen is likely to indicate that, despite weak growth, policymakers intend to hike rates next week to tamp down inflation and bolster the NOK. Fed policymakers are unlikely to be quite as direct, though they will probably continue to signal that a rate hike later this month remains likely. Finally, Michele Bullock of the RBA will deliver two speeches that promise to echo decreased concerns about the Aussie housing market.

This is an abbreviated version of the Cyborg Analyst. The full weekly report contains detailed analysis based on Prattle’s Central Bank Analytics. Subscribe here.

The Prattle Team

New Call-to-action